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With the price of oil dropping below 30 mark, the analsysts start looking at a price barrier of 20usd, which is cost of oil production. At the same time the oversupply of oil can not last. There are no extra storage capacities left in the world. The only solution would be to close the production facilities, which will lead to reduction in supply and rebalancing of the oil price. Looking at the daily oil chart we can see that the Fridays price action has reached a convergence area of 161.8 Fibo extensions from two large moves. This might advocate in support of other analysts' calles for the price of oil to stabilize in the area of 40usd by the second half of the year. For a trade strategy, look for short-term rebound of oil to the nearest resistance targets at 32.5 and 35, further consolidation and move to 40 later in the year.
